Head to Head Contrast: Microvast (NASDAQ:MVST) and NeoVolta (NASDAQ:NEOV)

Microvast (NASDAQ:MVST) and NeoVolta (NASDAQ:NEOV) are both small-cap business services companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Volatility & Risk

Microvast has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, NeoVolta has a beta of -2.06, suggesting that its share price is 306% less volatile than the S&P 500.

Earnings & Valuation

This table compares Microvast and NeoVolta’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvast	$306.62 million	0.35	-$106.34 million	($0.32)	-1.07
NeoVolta	$3.46 million	25.94	-$2.64 million	($0.06)	-45.00

NeoVolta has lower revenue, but higher earnings than Microvast. NeoVolta is trading at a lower price-to-earnings ratio than Microvast, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Microvast and NeoVolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microvast	-29.79%	-18.01%	-9.80%
NeoVolta	-68.01%	-32.41%	-32.25%

Analyst Recommendations

This is a summary of recent ratings for Microvast and NeoVolta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvast	0	1	3	0	2.75
NeoVolta	0	0	0	0	N/A

Microvast currently has a consensus target price of $4.50, suggesting a potential upside of 1,215.02%. Given Microvast’s higher probable upside, analysts clearly believe Microvast is more favorable than NeoVolta.

Institutional and Insider Ownership

20.7% of Microvast shares are owned by institutional investors. Comparatively, 5.1% of NeoVolta shares are owned by institutional investors. 31.3% of Microvast shares are owned by insiders. Comparatively, 15.0% of NeoVolta shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Microvast beats NeoVolta on 10 of the 13 factors compared between the two stocks.

About Microvast

Microvast Holdings, Inc. provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.